Humana Inc. (NYSE: HUM) ("Humana") and Metropolitan Health Networks, Inc. (NYSE: MDF) ("Metropolitan") today announced that they have entered into a definitive agreement pursuant to which Humana will acquire Metropolitan in a transaction valued at approximately $850 million plus transaction costs. Headquartered in Boca Raton, Florida, Metropolitan is a Medical Services Organization that provides and coordinates medical care for approximately 87,500 Medicare Advantage, Medicaid, and other beneficiaries, primarily in Florida utilizing a primary care-centric business model.
“With this strategic acquisition, Humana will further expand our capabilities and help to simplify and improve the overall health care experience for our members.”
Under the terms of the agreement, which has been approved by both companies' boards of directors, Metropolitan stockholders will receive $11.25 per share in cash from Humana for each Metropolitan share. Humana will also repay all of Metropolitan's outstanding debt.
"We believe firmly in Metropolitan's proven integrated-care model and its demonstrated scalability to new markets," said Bruce Broussard, Humana's President. "With this strategic acquisition, Humana will further expand our capabilities and help to simplify and improve the overall health care experience for our members."